New Framework for Cable TV Services Would Lead to Lower Prices in India: Trai

Telecom regulator Trai has now asserted that the implementation of the new framework for broadcasting and cable services would lead to lower prices for TV viewers, even as it slammed the “misinformation campaign” being carried out by some to fuel “hyperbolic fear” among consumers. The Telecom Regulatory Authority of India (Trai) Chairman R S Sharma said the regulator is working to ensure a “smooth transition” to the new framework without causing any disruption for consumers. “This is a great framework which has been validated by the highest court of the land, but there are certain stakeholders who are trying to create misconceptions that consumer bills are going to rise. It is bogus,” Sharma said without naming anyone.

Slamming the “misinformation campaign”, Sharma said that the latest framework entailing service quality, interconnection and tariff aspects would reduce overall prices for consumers, raise transparency, and act as a “cleansing exercise”.

“Certain stakeholders are trying a perception battle…and creating hyperbolic fear or fear of unknown saying it will increase prices and that consumers will have no choice. This is all baseless,” Sharma said.

The regulator has barred fixed fee deals, he said adding that the revenue streams will now be completely synced with the number of viewers of a channel. “We feel that the fears are being created in the minds of people…with an ulterior motive,” he said.

Asked if the industry players have approached the regulator seeking an extension of stipulated timelines for implementation of the new framework, Sharma said Trai’s efforts are to safeguard consumer interest and that the authority will work out a methodology to ensure a smooth transition.

Telecom regulator Trai has already initiated a consumer outreach programme to create user awareness on the nuances of its new tariff order and framework for the broadcasting sector. “Also, on our website we have created certain different packages for different markets to demonstrate that the prices will not increase in any of the markets,” Trai Secretary S K Gupta said.

The Supreme Court had recently dismissed a plea challenging the Trai’s March 2017 regulations and tariff order relating to fixation of charges for free and pay channels. The new framework, allows consumers to select and pay only for the channels they wish to view and requires TV broadcasters to disclose maximum retail price (MRP) of channels individually and that of bouquets.

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14 Comments on "New Framework for Cable TV Services Would Lead to Lower Prices in India: Trai"

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KGF (Kolar Gold Fields) | Dec 21

December 19, 2018 5:44 pm 5:44 PM

Madras High court cut TRAI’s tooth by allowing bundling of junk channels. Nobody should watch DTH or cable or pay for them for a month or 2. Then these channels will be shown their places and reduce all their popular channels rates to less than 10rs. They don’t depend on you or me or normal folks for money. They depend on ads and they will give the channels for free even if not enough people watch them.

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Krishna

December 19, 2018 1:48 pm 1:48 PM

Is the base pack price or network capacity charge of 130 plus taxes is fixed or will be change with no of channels subscribed?

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KGF (Kolar Gold Fields) | Dec 21

December 19, 2018 5:44 pm 5:44 PM

Nobody knows this yet.

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Jayanth Kumar K

December 19, 2018 1:23 pm 1:23 PM

because of current chairman all other telecom operators are looting money from customers, next will be DTH/Cable market.